On Revenue and Welfare Dominance of Ad Valorem Taxes in Two-Sided Markets
A benchmark result in public economics is that it is possible to increase both tax revenue and welfare by making a monopoly subject to ad valorem taxes rather than unit taxes. We show that such revenue and welfare dominance does not hold in two-sided markets.
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- Jean-Charles Rochet & Jean Tirole, 2003.
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- repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
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